La Mancha Resources Inc LACHF

Actual Cost Per Oz

[MontyHigh]

Ok, well I went back to the Q3 financials and I find that they sold 15390 oz and that the total operating expenses excluding exploration was $C11,146,000 which works out to a Canadian cash cost of $C724/oz which looks pretty scary. Converted into USD its $576 / oz, which is pretty high.

So that partly explains why the stock price is low.

Finally, the revenue per oz is only $628/oz. Can anyone explain that? Is it the hedging? Is it net royalties?

What is this gold oz mortgage? Is this some kind of a hedge? Where can I get the full info on this.

When do the next financials come out? End of April?

My conclusion, at this point, is that the reason the company is valued so low in terms of price to annual oz and
price to oz in the ground is because it has not been making money even at recent elevated gold prices.

I'll probably buy a little, but not as much as I thought yesterday. I'll probably call IR today for some answers to these questions.

MontyHigh

[RetiringYoung]

Please share what you find Monty. Cash costs/oz must be in the range of +/- 500US these days imoThe market is seldom REALLY wrong if you dig hard enough. The trick is finding the gems.Retiring Young

[eopper]

The news release dated 2/17/09  seems to say that LMA expects 497 US to be the cash cost as they reach for 100k oz.  Appears that your figures refer to a certain mine -not the whole.

[MontyHigh]

Well, companies like to quote cash costs and its hard to know exactly what I mean.When I care enough about a company to dig in and check it out, I take the operating costs minus exploration from the income statement and take the number of oz mined and calculate it myself. Then I know what I'm talking about and I know what's included and what isn't.So, that's what I did for all of

[RedHorizon]

You might be off by including depreciation or corporate overhead in your calculation.  Corporate overhead is a cash expense of the company but not a cost that a buyer of a given mine would have to incur.

[ak27]

have to agree Monthy High; LMa cost of production is higher than its peers.Examples - the projected cost in Australian is $450-480 yet LMA transport and process its ore to neibouring mills at a cost of 25 to 30 %.The projected Sudanese cost is stagerring $680  and that number does not bog well in compareson to other African miners.As I see it, to be a viable LMA may have no choice but to

[Mantracker]

If you read over the nr again the average cost of production is 497.00 with the three mines not to mention the White Foil so with gold trading around the 900.00 range LMA is going to be bringing in some very decent cash flowWith production doing approx 90.000 ozs ,400.00 profit per ounce we are in great shape here .The way GOLD has been moving up over the last years we could see 1000 + easily

[ak27]

the point is not that LMA is not profitable; the point is that LMA actual (not projected ) cost is lagging behind the one of other junior minors. Hence there are other better juniour plays around  

[RedHorizon]

"As I see it, to be a viable LMA may have no choice but to incuradditional $ 100 million US in developping its own milling operation inAustralia."An incredibly ignorant comment.  They will have to incur $100 million in capex FOR WHAT?  The capex they have announced to bring White Foil to production is $1.5 million.  They will in fact truck the White Foil ore to someone

[ak27]

to build the mill, Einstein

[ak27]

beside I am not shorting LMA; simply there are much better plays out there

[Nergy]

Ak27 Could you provide us with some examples of the better plays?

[RedHorizon]

Learn to read AK.  They have no need to build a mill.  They are toll milling the Frog's Leg ore right now and this is extremely preferable to incurring a large capex and wasting 2 years while they can generate cash flow right now which they are doing. The only case in which they would need to build a mill would be if they made a major gold discovery and this will cause the stock to

[ak27]

RH, if you are so knowledgeable about LMA/ close to LMA management, why do not tell us about the blackmailing practices of LMA's JV partner in Frog''"s Lake and the backorders in their mined ore? I can think of several juniors operating in Canada and Mexico with actual production similar or exceeding  the one of LMA, no debt (BTW, RH you never mentioned that LMA is in

[RedHorizon]

AK:"if you are so knowledgeable about LMA"I did not state that I was "so knowledgeable" about LMA, I found your statement that they will need to invest $100 million to be incorrect,"tell us about the blackmailing practices of LMA's JV partner in Frog''"s Lake"I am not aware of blackmail occurring, if you are then please enlighten us,"I can think